Several studies have shown that the country economy is based on oil and fossil fuel based, very vulnerable to factors such as war and sanctions. In recent years the Iranian government is trying to reduce dependence on oil and expanding the tax revenue. In this study the use of tax revenues, the effect of three types of tax rates including corporate tax rate, business tax rate and indirect taxes rate (each share of taxes in GDP) on economic growth in Iran during the Thirty Years' 1981-2010 with using of Auto Regressive Distributed Lags (ARDL) examined. In addition to these three variables, other variables such as annual population growth rate, inflation rate and degree of trade openness on economic growth is examined. The results suggest that the impact of the increase in the rates of these three types of taxes on economic growth is negative and significant, and for an increase in the rate of corporate tax rate, business tax rate and indirect taxes rate by 2/4 and 2/8 and 1/8 of economic growth is reduced. The results also reflect the positive impact of population growth rate, trade openness rate and the negative impact of inflation rate on economic growth in Iran.
| Published in | Journal of Finance and Accounting (Volume 3, Issue 6) |
| DOI | 10.11648/j.jfa.20150306.18 |
| Page(s) | 220-226 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2015. Published by Science Publishing Group |
Corporate Income Tax Rates, Business Tax Rates, Indirect Tax Rates, Economic Growth Rate
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APA Style
Mohsen Dehghan, Masood Nonejad. (2015). The Impact of Tax Rates on Economic Growth of Iran in the Years 1981-2010. Journal of Finance and Accounting, 3(6), 220-226. https://doi.org/10.11648/j.jfa.20150306.18
ACS Style
Mohsen Dehghan; Masood Nonejad. The Impact of Tax Rates on Economic Growth of Iran in the Years 1981-2010. J. Finance Account. 2015, 3(6), 220-226. doi: 10.11648/j.jfa.20150306.18
AMA Style
Mohsen Dehghan, Masood Nonejad. The Impact of Tax Rates on Economic Growth of Iran in the Years 1981-2010. J Finance Account. 2015;3(6):220-226. doi: 10.11648/j.jfa.20150306.18
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Download@article{10.11648/j.jfa.20150306.18,
author = {Mohsen Dehghan and Masood Nonejad},
title = {The Impact of Tax Rates on Economic Growth of Iran in the Years 1981-2010},
journal = {Journal of Finance and Accounting},
volume = {3},
number = {6},
pages = {220-226},
doi = {10.11648/j.jfa.20150306.18},
url = {https://doi.org/10.11648/j.jfa.20150306.18},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20150306.18},
abstract = {Several studies have shown that the country economy is based on oil and fossil fuel based, very vulnerable to factors such as war and sanctions. In recent years the Iranian government is trying to reduce dependence on oil and expanding the tax revenue. In this study the use of tax revenues, the effect of three types of tax rates including corporate tax rate, business tax rate and indirect taxes rate (each share of taxes in GDP) on economic growth in Iran during the Thirty Years' 1981-2010 with using of Auto Regressive Distributed Lags (ARDL) examined. In addition to these three variables, other variables such as annual population growth rate, inflation rate and degree of trade openness on economic growth is examined. The results suggest that the impact of the increase in the rates of these three types of taxes on economic growth is negative and significant, and for an increase in the rate of corporate tax rate, business tax rate and indirect taxes rate by 2/4 and 2/8 and 1/8 of economic growth is reduced. The results also reflect the positive impact of population growth rate, trade openness rate and the negative impact of inflation rate on economic growth in Iran.},
year = {2015}
}
TY - JOUR T1 - The Impact of Tax Rates on Economic Growth of Iran in the Years 1981-2010 AU - Mohsen Dehghan AU - Masood Nonejad Y1 - 2015/12/10 PY - 2015 N1 - https://doi.org/10.11648/j.jfa.20150306.18 DO - 10.11648/j.jfa.20150306.18 T2 - Journal of Finance and Accounting JF - Journal of Finance and Accounting JO - Journal of Finance and Accounting SP - 220 EP - 226 PB - Science Publishing Group SN - 2330-7323 UR - https://doi.org/10.11648/j.jfa.20150306.18 AB - Several studies have shown that the country economy is based on oil and fossil fuel based, very vulnerable to factors such as war and sanctions. In recent years the Iranian government is trying to reduce dependence on oil and expanding the tax revenue. In this study the use of tax revenues, the effect of three types of tax rates including corporate tax rate, business tax rate and indirect taxes rate (each share of taxes in GDP) on economic growth in Iran during the Thirty Years' 1981-2010 with using of Auto Regressive Distributed Lags (ARDL) examined. In addition to these three variables, other variables such as annual population growth rate, inflation rate and degree of trade openness on economic growth is examined. The results suggest that the impact of the increase in the rates of these three types of taxes on economic growth is negative and significant, and for an increase in the rate of corporate tax rate, business tax rate and indirect taxes rate by 2/4 and 2/8 and 1/8 of economic growth is reduced. The results also reflect the positive impact of population growth rate, trade openness rate and the negative impact of inflation rate on economic growth in Iran. VL - 3 IS - 6 ER -
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